Boost Your Sales and Profits By Offering Add-On Products and Services

Automotive service centers do it. Insurance companies do it. Even department stores and specialty retailers and wholesalers are doing it too. Many businesses today are increasing sales and profits by looking for opportunities to include extra products, services, packages, or expertise in addition to what the customer is picking up.

Back in the day of VHS video rentals, companies like Jumbo Video offered optional “tape protection” — a form of insurance against damages caused while a store's products were in the customer's possession. There was an additional, small fee involved and my estimate is that in 99% of cases, this fee was pure profit for the store. But the small upcharge was something many renters would gladly pay out for the peace of mind it provided.

Electronics and appliance dealers offer extended warranties beyond the standard manufacturer's warranty as an extra option. Shoe stores also
sell laces and shoe polish. Clothing stores offer socks, belts and other accessories to customers standing at the cash register with a pair of pants in hand.

All of the above are additional ways these businesses generate greater revenue. The beauty of this from the business owner's perspective is that it often means a substantially higher profit margin from the same volume of customers. Instead of spending $100, customers can often fork over an additional $25 - $50 or more, depending on the circumstances.

How can you tap into this profit-generating idea? You can start by observing the wants, desires, problems and annoyances of the marketplace. Next, explore all possible ways your business could offer additional money-makers at the point-of-purchase, as an up-sell, or even as a back-end or follow-up product.

Opportunities exist -- even for a new business -- to substantially increase the average sales value and profits as a result.